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A ÿ�մ���n state’s ambition to become Southeast Asia’s hub for lucrative satellite assembly and space launches pivots on creating a talent pool of aerospace and rocket engineers to draw the likes of Elon Musk’s Space X, experts say.

The Sabah state government last week announced that it had launched a one-year feasibility study into the project, which it hoped would turn the state into an industrial hub for the space industry.

Initially floated in 2023, the state government signed a memorandum of understanding with Ukraine’s Yuzhnoye State Design Office – which specialises in space-rocket technology – and local defence and aerospace firm Sovereign Sengalang, to explore Sabah’s potential as a regional space launch site.

Sabah has an extensive shoreline stretching about 1,500km on its mainland, and sits close to the equator, ideal conditions for rocket launches and recovery.

At the time, Sabah Chief Minister Hajiji Noor said the centre had the potential to generate 200 million ringgit (US$45.5 million) in annual revenue from space launches, creating 5,000 new jobs and hundreds of new companies in construction, electronics and logistics.

The state government did not say how much the project could cost or set a timeline for completion.

But experts say what may seem a far-fetched dream is possible with the right political wind behind it.

“To have a successful industry, you must have the talent and competencies,” Naguib Mohd Nor, president of the ÿ�մ��� Aerospace Industry Association (MAIA), told This Week in Asia.

“It is very much feasible, but I think it really is about whether or not there is a body that can see the project through.”

Sabah may seem a curious choice to lead ÿ�մ���’s bold step into the beyond.

The state on ÿ�մ���n Borneo has long struggled to find its industrial groove, hobbled by chronic power and water shortages due to legacy infrastructure that is unable to cope with its fast-growing population of about 3.7 million people.

Large-scale foreign investments into Sabah’s space programme could go a long way in helping the state address its infrastructure shortcomings.

The challenge for the state government will be to convince potential investors such as Space X that Sabah is a safe bet, according to Oh Ei Sun, a senior fellow at the Singapore Institute of International Affairs.

“If the foreign investment is huge and exclusive without the need for co-funding from the state or federal governments, [the space project] could take off,” Oh told This Week in Asia.

But even if space-programme investments could potentially pay for much-needed infrastructure upgrades in Sabah, the state government would still need to ensure sufficient power and clean water capacity to get the project started, analyst Hafidzi Razali said.

“The state government will also need to better align and coordinate with the federal government on potential investment incentives,” said Hafidzi of policy advisory and strategic communications firm Strategic Counsel.

According to Naguib of the MAIA, the project can take flight if it is backed by the “right funding” and regulatory support from both state and federal governments, tapping into ÿ�մ���’s National Space Policy 2030.

The initiative was launched by Prime Minister Anwar Ibrahim two years ago to spur growth in the local space industry.

Sabah could also leverage ÿ�մ���’s expertise in the aerospace industry, which Naguib said provided aviation giants including Boeing and Airbus with everything from engineering services to composite and turbine engine parts made in the country.

“All the elements are there … Just look at Space X. It is one man,” Naguib said.

“If one man can achieve so much, how can a state not be able to do it?”